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<br /> <br />Supplementary Information - 1984 Annual Report <br />Henderson Mine <br />March 26, 1985 <br />Page 4 <br />II. General Concerns <br />Question 1: Please provide more detailed breakdown as to how the <br />"Grading b site preparation" was derived at the <br />various sites where this activity must occur. <br />Answer: This question was also asked of the Climax Mine cost <br />calculations. The explanation of this line item is <br />essentially the same for both mines. <br />As you are aware, we have a number of structures at <br />Henderson. Many of the structures have concrete <br />foundations which will require further work after the <br />structure is dismantled. The "Grading and Site <br />Preparation" line item provides an estimate of the <br />cost of reducing the concrete foundations (if <br />practical), burying or covering the foundations and <br />grading for drainage. Grading and Site PreF~aration <br />estimates have been included for some sites which do <br />not have structures and foundations. Costs i.n those <br />cases are to cover the cost of grading for drainage <br />only. <br />Most of the amount allocated for Grading and Site <br />Preparation at the various areas is for dozer work. <br />The amount of material to be moved varies from site <br />to site and calculating the exact quantity in each <br />case would be impractical. We have made liberal <br />estimates of the amount of dozer work required in <br />each area. A D9 dozer with a universal blade can be <br />contracted, with an operator, for about $1,000.00 per <br />day. Productivity calculations corrected for various <br />factors such as job efficiency and type of ma.terialg <br />indicate that a D9-U dozer can move about 8,000 yd <br />of material 140 feet in an 8-hour shift. Areas 1 and <br />5, the Mine and Mill sites, will require tl~e most <br />grading and site preparation of any of the areas. <br />The $100,000.00 which has been allocated for Grading <br />and Site Preparation for each of these areas would <br />move 400,000 yd of material and leave $50,000.00 for <br />reducing foundations. $100,000.00 is certainly <br />adequate to accomplish the tasks. Grading and Site <br />Preparation cost estimates for the other are>as are <br />determined in a similar fashion. <br />